Last year, in the IPO market we saw record subscriptions and stellar listing gains of over 100 percent in case of some of the IPOs. In a similar environment, we also saw some stock making a weak debut on the exchange. Here we will talk on such IPO stocks that listed at a discount to issue price but now are scaling new highs.
Stocks that listed weak but now have gained substantial momentum
|IPO stock||Listing date||Issue price||Listing price||Last traded price||52-week high|
|Barbeque Nation||April 7||Rs. 500||Rs. 489.95||Rs. 821.9||Rs. 953.35|
|Angel Broking||October 5, 2020||Rs. 306||Rs. 275||Rs. 734||Rs. 787|
|Anupam Rasayan||March 24, 2021||Rs. 555||Rs. 520||Rs. 758.6||Rs. 798.95|
|UTI AMC||October 12, 2020||Rs. 554||Rs. 490||Rs. 754.6||Rs. 777|
|Macrotech Developers||April 19, 2021||Rs. 486||Rs. 439||Rs. 636||Rs. 758|
|Easy Trip Planners||March 22, 2021||Rs. 187||Rs. 212||Rs. 276.9||Rs. 298|
1. Barbeque Nation (BBQ):
In the previous day's session the stock of QSR firm hit a new 52-week high of Rs. 953 per share on the NSE. Also, the firm posted Q4 results which came in better with sequential growth in revenues by 16% at Rs. 226 crore. Moreover the low base has also helped here.
Some of the positives of the company
1. In an expansion mode despite the Covid led fall out
2. Planned with a new product to cater to the demand of customers amid the pandemic called Barbeque-in-a-Box (including starters, main course, desserts)
3. Financially better placed in comparison to its standing before launching the IPO.
2. Angel Broking:
Now as we have seen that the Covid 19 crisis also led to record gains for the brokerage industry with record retail participation, Angel Broking is no exception to it. The Angel Broking IPO listed on the bourses on October 5, 2020. Again, this stock hit its 52-week high price yesterday i.e May 27.
ICICI Securities in its report has given a target of Rs. 900 with a buy recommendation. For the investment rationale, it suggest that operating on the flat fee model, its revenue has seen a sharp jump of 98 percent while in client addition also the company saw a tremendous 171 percent growth in FY21. Also, Narayan Gangadhar who has immense tech experience will enable the company to strengthen its digital capabilities.
3. Anupam Rasayan:
The scrip of specialty chemicals company was listed on the bourses on March 24, 2021. On May 19, 2021, the stock hit its 52-week high price of Rs. 799, close to 45% gains in 2 months time.
Talking about the positive for the firm:
1. New contracts: In a filing the chemicals company said, "received and signed contracts amounting to Rs 540 crores from two renowned multinational companies dealing in the fields of life sciences chemicals.
2. FII acquiring stake: Plutus Wealth Management bought 1 percent equity into the firm for Rs. 647 per share.
3. Renewable energy foray: The company announced setting up of 12.5 MW solar power plant for Rs. 43 crore. This will enable to company to save on energy costs and save it a huge Rs. 10 crore per year for 25 years.
4. UTI AMC:
The scrip of asset management company hit a 52-week high price of Rs. 777 on May 18, 2021.
FIIs as well as Mutual funds have been increasing their stake in the AMC stock.
Other positives as highlighted by a brokerage house:
1. Gains in market share in equity segment in addition to flows
2. SIP and folio addition
3. Cost reduction initiatives
4. Hike in pension fund management charges.
5. Lodha Developers:
On April 19, this real estate company made a weak listing at a discount of 10 percent in comparison. Now even as amid the Covid 19 woes, real estate players see robust sales performance in FY22, Lodha Developers is also gaining traction.
6. Easy Trip Planners:
The travel companystock in comparison to its subscription saw the worst listing, listing at a premium of just 13.5% over the IPO issue price. After the company announced dividend of Rs.2 per share and then on heavy volume, the stock has been gaining ground.
As and when the second wave led restrictions ease, the company is expecting pent up demand to provide an impetus to the segment.